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Group Report


Total assets were virtually unchanged to prior year at CHF 2 393 million in the year under review (– 0.4%). This was mainly due to higher accounts receivable and cash and cash equivalents. Due to seasonal conditions total assets fluctuated relatively strong during the year.

The net carrying value of goodwill went down by CHF 6 million to
CHF 915 million. This is due mainly to the withdrawal from loss-making European tour operating activities.

Kuoni Group’s equity stood at CHF 779 million at end-2013 (2012: CHF 699 million), giving an equity ratio of 32.6%. This increase was mainly driven by the net result of CHF 69.2 million, actuarial gains or losses of CHF 11 million and realised gains and losses from financial instruments of CHF 10 million.

A CHF 200 million issue of a 1.50% 6-year bond was successfully placed on 28 October 2013. The proceeds of the issue were used to refinance the existing CHF 200 million bond, which fell due on 28 October 2013. As a consequence, current liabilities decreased and non-current liabilities increased compared to previous year.


The Kuoni Group’s value-focused management style aims to keep management of the company aligned to long-term value creation. The central management performance indicator here is Kuoni Economic Profit or KEP.

Kuoni Economic Profit improved during the year under review from CHF – 56.6 million to CHF 52.1 million. This increase was mainly due to the improvement in EBIT and operating earnings power. In addition, the cost of capital (WACC) was adjusted from 8.5% to 7.5% owing to the Kuoni Group’s lower cost of debt and equity. The 1.0 percentage point change in WACC led to lower costs for capital invested in operations and thus to a positive effect of CHF 9.5 million on Kuoni Economic Profit. Average invested capital fell from CHF 984 million to CHF 950 million. The reasons for this were the active management of invested resources and the fact that depre­ciation and amortisation were not fully offset by new investments.


The return on invested capital (ROIC) in 2013 was 13.0% compared to 2.8% in 2012. Return on invested capital (ROIC) excluding effects from withdrawal from loss making european tour operating activities and pension fund changes was 9.6%.

Key Figures (CHF million)
2013 without effects from withdrawal from European tour operator activities and Swiss pension fund change and curtailment  
Net operating profit after tax (NOPAT) 123 91 28
Average invested capital 950 950 984
Return on invested capital (ROIC) 13.0% 9.6% 2.8%
Weighted average capital costs (WACC) 7.5% 7.5% 8.5%
ROIC – WACC spread 5.5% 2.1% – 5.7%
Kuoni Economic Profit (KEP) 52.1   – 56.6
Delta KEP 108.7   – 9.8



The International Monetary Fund (IMF) forecasts that the positive effects that drove global economic growth in the second half of 2013 will continue to influence forecasts → in 2014 (World Economic Outlook, January 2014). In the USA the upturn is being fuelled by increased domestic demand and a subsiding fiscal drag. The latest available estimates suggest that the Eurozone will continue to recover, though the upturn will be more modest in the crisis regions. The private and public debt burden will dampen domestic demand, but increasing exports will continue to help growth. Further expansion is expected in the emerging economies. India’s economy will continue to expand, fuelled by export growth and measures to support new investment. Increased investment bolstered China’s growth in 2013, but this is expected to be a temporary effect; government measures to rein in credit will see growth slow slightly in 2014.

The World Tourism Organization (UNWTO) believes that international tourism will continue to expand worldwide. For 2014 it predicts growth of 4% to 4.5%, which is above the long-term trend rate (source: UNWTO World Tourism Barometer, January 2013).

Excluding the one-time effects, Kuoni Group achieved in 2013 turnover of CHF 5 610 million, an EBIT margin of 2.1% and a return on invested capital (ROIC) of 9.6%. In the medium term, Kuoni Group is aiming for annual turnover growth (CAGR) for 2014 – 2016 of 4% to 6%, with an increased EBIT margin of 2.5% or higher. Alongside EBIT growth, free cash flow should also increase. Return on invested capital (ROIC) should be at least 12% in 2016.